Industry specific cover image FY10 GC SCM Plan Draft Version May | 2009

Industry specific cover image

FY10 GC SCM Plan

Draft VersionMay | 2009

Copyright ©2009, Oracle. All rights reserved. Oracle & Cathay Pacific Confidential 2

• FY09 Review

• Sales Consulting Challenges

• FY10 Moving Forward

Agenda


• FY09 Review



Agenda


• FY09 Review



Agenda

Copyright ©2009, Oracle. All rights reserved. Oracle & Cathay Pacific Confidential

A Coordinated Effort to Drive Improvement from 3 Dimensions

Technology

People and Policy Process

• Solutioning Capabilities (Industry, Domain, Product)

• x-Product Integration• Customer & Business

Driven• Leverage Oracle

Superior Technology• ISA Continuum• Talent Mgmt• Leverage HQ and

Overseas references• Training

• Tight Engagement w/ Sales

• Key Account Approach

• Visibility on SC Projects

• Knowledge = Power

• SC GC Portal• Internal Website

(OneSource)

Value from SC

Source: 9 pts


Customer Centric Solutions

Industry Knowledge

BudgetPlanning

StrategicSourcing

Sales &Operation Plan

Supply Plan & Execution

Sell, Order, Channels Mgmt

Fulfillment & Delivery

Service Chain

Oracle Solution Excellence to Customers

Financials Projects Agile PLM

Accounting

Business Domain

CRM

Peoplesoft

Budgeting

A&DPharma E&C

SRM

PLM

S&OP

ALM

Service

High Tech Ind. Mfg. Telco

Business Knowledge

Domain Knowledge

Product Knowledge Demantra Siebel OTM

HCM


Solutions Centric

Shipping

Custom

Back Office Applications

Front Office Applications


Cathay Pacific is Looking for Opportunities to Better Manage Spending

• Current Procurement solution (i-Procurement, known in CPA as CX eBuy) was implemented more than 6 years ago, and no longer fulfills all of CPA’s requirements for procurement management

– Some areas within CPA have implemented their own procurement /inventory / spend management systems (e.g. Ultramain for engineering)

• The priority improvement in procurement management is spending analysis capability. A better spending analysis capability would enable Cathay to capture important trends/ signals of development of different categories of spending and react timely to resolve any potential issue.

• From a strategic viewpoint, such improvement will enable Cathay to become more agile and efficient amid a challenging and volatile industry environment.


Cathay Pacific Insight Engagement Objectives

• Oracle’s Insight Team offers to perform an assessment of Cathay Pacific, specifically around the business processes of

– Procurement and Spending Management

• The purpose of the assessment is:– to assess the current procurement

solution – to identify the key capability gaps– to develop a recommendation to

close the capability gaps, including potential improvements in process, measurement and IT solutions

– to identify to-be process capability regarding spending management

For Discussion

Level 1: the CURRENT capability level

Level 2: the POTENTIAL capability level supported by the current system

Level 3: the DESIRED capability level

The 3 levels of capability need to identified in the process (illustrative)

Near term focus: get maximum value from existing investments

Longer term: enhance system capability to address more business needs


We’ve Conducted Interviews With APD and IT

•Sam Kynaston - Manager IT Supplier Relationship

•Keith Kwan/Ricky Li - Purchasing Manager, Inflight & Support Services

•Michael Pratt - Manager Purchasing (PNL & Ground Services)

•David Hammond - Manager Purchasing - Aircraft Trading

•Paul Barwell - Manager Procurement

•Michael Scantlebury - GM Purchasing & Aircraft Trading

•Gavin Fernandez - Manager Purchasing (Fuel & Fuel Services)

•Mark Watts - Manager Purchasing (Marketing & Product)

•Clement Law/Edan Fung - IT Manager - Corporate Services/Business Analyst


• Background

• Key Procurement Management Challenges

• Recommendations

• Next Steps

Agenda


Summary - Key Challenges in Procurement Management

1. Lack of visibility of spending and analysis capability• Timely report of overall spending, current 1 or 2 month lead time to manually dig

out info not meaningful• Analysis of spending by categories/sub-categories, suppliers, user division• Analysis of compliance (price, contracts, etc)

2. Lack of integrated procurement solution across CX APD and procurement• Some categories has no system, other categories use its own isolated solution,

CXeBuy covered only about 2% of total spending• Getting financial data from FMIS and analyzing them for purchasing purpose is

time consuming• Not fully leverage investment in license and past implementation, increase the

complexity and cost of IT support team3. Improvement opportunity of integration of CX and KA systems and relevant processes

• Data integration to enable more accurate analysis• Consolidate the suppliers

4. Opportunity to close the loop for vendor performance management• Supplier performance report and ranking• …


Challenges Capabilities Required Potential Values

• 12 pt Plain, Initial Cap• 12 pt Plain, Initial Cap• 12 pt Plain, Initial Cap• 12 pt Plain, Initial Cap• 12 pt Plain, Initial Cap• 12 pt Plain, Initial Cap



Challenges, Capabilities, Value – Inflight and Support ServicePage Sub-heading:18pt Plain Text, Title Case. Resides On Page In This Position

Source: Cathay Interviews






Challenges, Capabilities, Value – PNL & Ground ServicesPage Sub-heading:18pt Plain Text, Title Case. Resides On Page In This Position







Challenges, Capabilities, Value – Aircraft TradingPage Sub-heading:18pt Plain Text, Title Case. Resides On Page In This Position







Challenges, Capabilities, Value – Aircraft Components and MaintenancePage Sub-heading:18pt Plain Text, Title Case. Resides On Page In This Position







Challenges, Capabilities, Value – Fuel and Fuel Services Page Sub-heading:18pt Plain Text, Title Case. Resides On Page In This Position







Challenges, Capabilities, Value – Marketing and Products Page Sub-heading:18pt Plain Text, Title Case. Resides On Page In This Position



The Current System OverviewIn-flight and Support Services

PNL and Ground Services

Aircraft Trading Aircraft Parts and Maintenance

Fuels and Fuel Services

Marketing and Products

Sourcing

Contract Mgt

Requisition

Approval

Quotation/ RFQ

Order

Receiving

Invoice

Payment

Vendor Performance

Spending Analysis


• Background


• Recommendations

• Next Steps

Agenda


A Coordinated Effort to Drive Improvement from 3 Dimensions

Technology

People and Policy Process

• 16 pt plain text sentence case



Value from

Supplier

Source: 9 pts


Potential Improvements on People and Policy

Source: 9 pts

• …


Potential Improvements on Process

Source: 9 pts

• …


Potential Improvements on Technology

Source: 9 pts

• …







Sourcing

Contract Mgt

Requisition

Approval

Quotation/ RFQ

Order

Receiving

Invoice

Payment

Vendor Performance

Spending Analysis







Sourcing

Contract Mgt

Requisition

Approval

Quotation/ RFQ

Order

Receiving

Invoice

Payment

Vendor Performance

Spending Analysis


Size of Potential Value


• Background


• Recommendations

• Next Steps

Agenda


Next Steps

XXX• …

1

XXX2

XXX…

3


Documents

Industry specific cover image FY10 GC SCM Plan Draft Version May | 2009